Cash Is King

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A prior post made reference to the fact that the U.S. dollar is the official currency in El Salvador. I won't get into discussing the pros or cons of this matter, as that's not what this blog is about, but suffice it to say, the old Colón currency is long out of circulation.

For those of you travelling to El Salvador from the U.S., it means you no longer have to exchange money, which had a tendency to be a hassle. Those of you travelling from other places just need to be aware you won't be receiving local currency in exchange for your currency, so don't be surprised.

Side note: I am not entirely sure where one exchanges other currencies, but I am assuming local banks are the appropriate place for those transactions as that's where one used to exchange U.S. dollars. That's also the norm in most countries. I will investigate the matter and append the information to this post.

Alright, now lets discuss some useful tips pertaining to your cash. 

First, avoid larger bills as much as possible, and by larger, I mean anything over $10. Unless you go to the mall or a good size restaurant/supermarket/store or the like, it is unlikely you will be able to get change for anything bigger than a $10 bill. 

Local convenience stores are notorious for this. Whenever possible, save whichever $5 and $1 bills you come by as they will be very helpful, especially for cab rides. Note as well that the $1 bill is being phased out and being replaced by the gold colored $1 coin. Pay attention to any that you might receive as some folks claim to have received gold colored $0.25 coins in their place. 

As with any other place you might visit, it is not wise to carry large amounts of cash on your person. Bear this in mind when you go out. If you intend to do a lot of shopping in the neighborhood shops, mercados (markets) or restaurants, credit cards won't get you very far. Cash is king at these places, as it is with street merchants. It is better to make multiple trips than be sorry later for any loses you may incur due to theft or other unfortunate circumstances.

On that note, should you exhaust your cash, it is possible to safely use your ATM card in El Salvador to withdraw more of it. However, you might encounter a minor challenge in accomplishing this task. In a nutshell, ATM machines are part of bank networks. If a particular ATM machine you visit corresponds with a local bank that is a member of the same network as your bank back home, you are usually good to go. 

How do you know which network your bank belongs to?

Take a look at the back of your ATM card. It should contain the names of the related networks, for example: Cirrus or Plus. The basic idea when selecting an ATM is to match up the symbols on the ATM itself to the network symbols on your card. This means you might need to search around for an appropriate ATM machine and although one may not work, another might.

This begs the question: Where should you look for ATM machines? 

You will find them at most shopping centers and even at some gas stations. Some of the newer shopping centers, like Multiplaza, have bank branches in the mall and they usually have ATM machines. Those should be your first choice. I would urge you not to use those at gas stations, especially if needing to withdraw large amounts of cash, as I simply don't consider them as safe. There is too much potential for random criminals watching you and also skimming activity.

Putting aside the basics, the next thing you need to know is that there will be a charge for you to withdraw funds, both from the local bank in El Salvador and your bank back home. Withdrawals I make usually end up costing me $7 total.

If you are wondering how much can be withdrawn, it is dependent on your account restrictions back home. Thus, you should be able to withdraw up to the limit you have back home. Take note that different machines provide different denominations of bills, some within the same withdrawal. For example, I've had some give me nothing but $10 bills, while others have given me a mix of $20, $10 and $5 bills -- and all the ATM machines in question were from the same bank. As a result, if you withdraw $200 or $300, be prepared to carry that amount of money in small bills.

Lastly, there are a variety of wire transfer services which other parties inside/outside the country can use to send you cash. Most tend to vary mainly on the fees they charge, varying by $1 - $2 per transaction, which usually runs about $12. I tend to like Xoom.com over others such as Western Union for the simple fact that they offer many, and less conspicuous, pickup points in El Salvador. Chances are there is a pickup location near wherever it is you are staying in El Salvador. 

It is worth investigating and passing on the information to relatives or friends back home should an emergency arise and they need to send you cash.